Stringent Environmental Norms and Existing and Proposed Nuclear Reactors Drives the Cooling Towers Market, According to New Report by Global Industry Analysts, Inc.

GIA announces the release of a comprehensive global report on the Cooling Towers markets. The global market for Cooling Towers is projected to reach US$2.6 billion by the year 2018, primarily driven by the stringent environmental norms mandating use of Cooling Systems in key end-use markets such as HVAC, Heavy Industrial & Utility and Chemical industries, among others. Existing and proposed nuclear reactors and robust demand from developing markets, particularly Asia-Pacific, also augurs well for the future of this market.

Cooling Towers: A Global Strategic Business Report

San Jose, California (PRWEB) November 16, 2012

Follow us on LinkedIn – Having first come into the market during the beginning of industrial revolution, cooling towers currently is one of the most critical capital investments for industries across the globe, particularly those where cooling forms an important part of industrial/manufacturing processes. Cooling towers have become indispensable components for large-scale industries, particularly for elimination of heat absorbed by circulating cooling water systems as a part of cooling process and to maintain ambient temperature. Such towers are used extensively in industries such as chemical plants, thermal and nuclear power plants, food & beverage processing, dairy, paper & pulp processing, and HVAC infrastructure among others.

Given its high-strung sensitivity to key end-use segments such as HVAC, heavy industrial & utilities, chemicals, and food processing, all of which are prone to exhibit sensitivity to economic conditions, the global cooling towers market registered significant slowdown in sales during the 2007-2009 economic recession. In the chemical industry, plant shutdowns, capacity rationalization and decline in investments sharpened the blow on new orders. Decline in commercial and industrial building construction activity also squeezed opportunities for cooling towers in the HVAC segment. Large-scale postponements in establishment of new electric utilities or upgrades of existing utilities came as a severe blow to cooling towers. While some projects, especially those led by small-scale utilities were abandoned, many others were deferred. The credit squeeze and subsequent delay in establishing new electric utility projects therefore affected deployments of new cooling towards during the period.

The market staged a quick recovery in the year 2010, thanks to resurgence in growth fundamentals such as improvement in macroeconomic environment, greater consumer confidence, acceleration in commercial building construction activity, and increased investments on infrastructure projects, particularly electric utilities and improvement of business scenario in key markets such as chemicals, food processing, dairy, paper & pulp and plastic among others.

Growth in the upcoming years will be primarily driven by existing and proposed nuclear reactors across the globe. Nuclear power in particular is gaining widespread attention in recent years with countries both developed and developing investing significantly on establishing new nuclear power plants or refurbishing the existing ones. Although nuclear reactors pose their own challenges in terms of operational safety, effects on environment, disposal of nuclear waste, and maintenance, they are increasingly being viewed as cost effective alternative energy sources to fossil fuel based systems. As of April 2011, about 437 nuclear power reactors were in operation across 30 countries, while an additional 64 reactors are in under construction stage across 14 nations. In the EU, about 143 nuclear power reactors were in operation as of April 2011. Currently, the capacity of nuclear power reactors totals about 370 GW. Against this backdrop, cooling towers, a key component of cooling process in nuclear power plants, therefore is bound to benefit significantly.

Stringent environmental protection norms governing the use of cooling systems in HVAC, energy, manufacturing, refining and process industries are also expected to drive accelerated adoption of cooling towers across the globe. EPA legislation in the US for instance proposes the existing once-through cooling systems at industrial and power plants in the nation, which demand significant water inflows, to be replaced with closed-loop cooling systems using cooling towers that bring down water inflow by over 90%. Government regulations mandating use of closed-loop systems for cooling will therefore drive demand for cooling towers in a range of industry segments. Growing focus on greener and environmental friendly building constructions is also helping drive replacement for aging cooling for HVAC applications with new energy efficient and environmentally safe models.

As stated by new market research report on Cooling Towers, the US represents the largest regional market for cooling towers worldwide. Asia-Pacific is the fastest growing regional market with dollar sales in the region waxing at a CAGR of about 4.8% over the analysis period. Thanks to booming economies, robust increase in business formation activities, accelerated pace of building constructions, particularly in emerging countries such as China and India, and subsequent rise in HVAC implementations will lend significant traction to cooling towers market in the region. By end-use, Air Conditioning/HVAC represents the largest revenue contributor. Heavy Industrial & Utility market closely follows Air Conditioning/HVAC.

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.